New York Bankruptcy Exemptions

In a Chapter 7 bankruptcy, in exchange for the wiping out a debtors debt with a discharge, the debtor must surrender all of his or her property to pay off creditors. However, bankruptcy law allows a debtor to keep and protect some property through certain exemptions.  Among the schedules that an individual debtor will file is a schedule of “exempt” property.

For most chapter 7 debtors, virtually all property will be exempt.  New York State bankruptcy exemptions include:

  • Between $75,000 and $150,000.00 in equity in your home depending on the county in which you live;
  • Up to $4,000.00 in equity in your car;
  • With certain exceptions, up to $10,000.00 in certain items of personal property;
  • The full value of pensions and public benefits such as Social Security, unemployment compensation, veteran’s benefits, public assistance and rent stabilized apartments;
  • With certain exceptions, cash up to $5,000 if not using Homestead Exemption;
  • Divorce awards to the extent reasonably necessary for the support of the debtor and any dependents of the debtor;

If you have questions or concerns about property exemptions in bankruptcy, we urge you to contact The Law Offices of Robert J. Nahoum, P.C. today by calling 845-232-0202.

This Law Offices of Robert J. Nahoum, P.C. is a Debt Relief Agency. We assist individuals to become debt free through Bankruptcy.

The following is a comprehensive list of the New York State exemptions:

New York State Bankruptcy Exemptions Chart

Asset Description Amount of the Exemption
 

Cash, Exemption

  

Includes: cash, bank accounts, saving bonds, and tax refunds

  

$5,000 – Only available if not using Homestead Exemption.  This exemption will be reduced if using more than $5,000 of Personal Property Exemption or if exempting an annuity that was purchased within the past 6 months.
 

Homestead Exemption

  

Home, co-op, condo or mobile home

  

$150,000 for the following counties: Richmond, Kings, Queens, New York, Bronx, Nassau, Suffolk, Westchester, Rockland and Putnam.

$125,000 for the following counties: Dutchess, Orange, Ulster, Columbia, Albany and Saratoga

$75,000 for all other counties.
 

Divorce Awards

  

Payments pursuant to an award in a divorce action, for the support of a wife, where the wife is the judgment debtor, or for the support of a child, where the child is the judgment debtor.

  

This is exempt to the extent reasonably necessary for the support of the debtor and any dependents of the debtor.
 

Cars

  

One per debtor

  

$4,000 limit.  (If motor vehicle has been equipped for use by a disabled debtor then the limit is $10,000).
 

New York State College Choice Tuition Savings Program Trust Fund

  

Funds in an account created pursuant to article fourteen-A of the education law are exempt from application to the satisfaction of a money judgment as follows:

  

(a)     100% of monies in an account established in connection with a scholarship.

(b)     100% of monies in an account is exempt where the judgment debtor is the account owner and designated beneficiary of such account and is a minor.

(c)     An amount not exceeding $10,000 in an account, or in the aggregate for more than one account, is exempt where the judgment debtor is the account owner.
 

Personal Property

  

Stoves and heating equipment with fuel for 120 days, sewing machine, books, photos and family portraits ($500 limit), seat or pew at place of public worship, domestic animals and food for 120 days ($1,000 limit), wearing apparel, household furniture, refrigerator, radio, television, computer, cell phone, crockery, tableware, cooking utensils, health aids, wedding ring, watch, jewelry and are ($1,000 limit), tools of trade ($3,000 limit).  If no homestead exemption is claimed, then $1,000 in personal property, bank account or cash.

  

The exemption is only available if not using the Homestead Exemption.  The aggregate value of assets allowed to be exempt under this section is limited to $10,000.  This exemption will be reduced if exempting an annuity that was purchased within the past 6 months.
 

Wrongful Death

  

Payment due to the wrongful death of an individual of whom the debtor was a dependant.

  

To the extent reasonably necessary for the support of the debtor and any dependents of the debtor.
 

Pension and Retirement Benefits

  

Payments under a stock bonus, pension plan such as 401(k), 403(b) or other ERISA approved plan, IRA, profit sharing or similar plans are exempt.

  

To the extent reasonably necessary to support debtor and dependants unless the plan was established by the debtor or an insider employed the debtor.
 

Personal Injury Awards

  

Payment on account of personal bodily injury

  

$7,500 which does not include pain and suffering or compensation for actual pecuniary loss.
 

Wild Card for personal property, bank accounts or cash

  

If no Homestead Exemption is claimed

  

$1,000
 

Cemetery Exemption

  

Land, set apart as a family or private burying ground is exempt upon the following conditions only: 1. A portion of it must have been actually used for that purpose; 2. It must not exceed in extent one-fourth of an acre; and, 3. It must not contain any building or structure, except one or more, vaults or other places of deposit for the dead, or mortuary monuments.

  

Completely exempt
 

Crime Victim Award

  

An award under a crime victim’s reparation statute

  

Exempt
 

Future Earnings

  

A payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is a dependent

  

To the extent reasonably necessary for the support of the debtor and any dependents of the debtor.
 

Health Aids: Medical and Dental Accessories

  

Completely exempt
 

Health Aids: Guide, service or hearing dog

  

Completely exempt
 

Insurance: Annuity

  

The use of this exemption may limit the cash and personal property exemption.

  

Exempt unless a court finds a portion of such payments are not necessary to meet the debtor’s ordinary financial needs.  Annuities purchased within 6 months of filing are limited to $10,000.
 

Insurance: Disability Insurance

  

Completely exempt
 

Social Security

  

Completely exempt
 

Security Deposits

  

Completely exempt
 

Public Assistance

  

Completely exempt
 

Insurance: Life Insurance

  

Proceeds from life insurance policies

  

Exempt
 

Partnership

  

Property of a partnership

  

Exempt
 

Trusts

  

Completely exempt
 

Trust Funds

  

Income

  

90% is exempt.
 

Unemployment Compensation

  

Completely exempt
 

Veterans’ Benefits

  

Completely exempt
 

Wages

  

Earnings received within 60 days or any time after income execution by Sheriff

  

90% of the earnings for his personal services are exempt.
 

Wages: Armed Forces

  

Completely exempt
 

Workers’ Compensation

  

Completely exempt